Legal Definitions - non-discretionary trust

A non-discretionary trust is a type of trust where the trustee is given specific instructions on how to invest the trust's assets. The trustee has no discretion or personal decision-making power in the matter.

For example, a non-discretionary trust may specify that the trustee must invest in a certain type of security, such as stocks or bonds. The trust may also require the trustee to diversify the investments among certain types of securities.

Another example of a non-discretionary trust is a trust that is set up to provide for the education of a beneficiary. The trust may specify that the trustee must use the trust's assets to pay for the beneficiary's tuition and related expenses.

These examples illustrate how a non-discretionary trust works by limiting the trustee's decision-making power and providing specific instructions on how the trust's assets should be invested or used.